Tritax EuroBox has agreed to a new takeover proposal from Canadian Brookfield, beating out the previous offer from London-listed Segro.
It sets the stage for a potential bidding war for the property portfolio, which includes highly sought-after warehouse facilities and distribution centers.
The real estate investment trust said it had accepted a £1.1 billion deal from Titanium Ruth, a company indirectly owned by the Canadian investment giant.
This new approach values each Tritax EuroBox share at 69 pence, a 6 per cent increase on the 65.1 pence per share proposal agreed with Segro last month and a 28 per cent premium to the May 31 share price before launch offer period.
A different approach: Tritax EuroBox has presented a new takeover proposal to Brookfield that tops the previous offer from developer Segro
Brookfield believes the acquisition is “a good fit for its diversified global logistics portfolio,” which currently spans 85 million square feet.
It also said taking Tritax private “better positions” the FTSE 250-listed company for additional investment in existing assets.
Since Tritax's listing on the London Stock Exchange in 2018, it has been difficult to trade Tritax shares at a fixed discount to net asset value – a known problem for UK-listed trusts focusing on illiquid assets such as property.
The company's trading saw significant growth at the start of the Covid-19 pandemic as the explosive growth of online commerce boosted demand for warehouses.
However, the value of its assets has fallen over the past two years as rising interest rates and easing of lockdown measures have prompted people to return to shopping in stores.
Robert Orr, chairman of Tritax EuroBox, said the group's shareholders “will benefit from significant growth in the undistorted value of their investment, while being provided with the flexibility to reinvest as they see fit.”
Tritax, headquartered in Old Bond Street, London, is a specialist investor in logistics centers and distribution centers across continental Europe.
It has 1.5 million square meters of space worth around €1.5 billion in countries including Germany, Italy and Sweden, and counts retail giants Amazon and Wayfair as well as medical device manufacturer Abbott Laboratories among its clients.
Brad Hyler, European Real Estate Director at Brookfield, said: “Tritax EuroBox has a portfolio of high-quality logistics assets in strategic locations across Europe.
“These assets complement our existing portfolio and by leveraging our global real estate expertise, we will actively manage them, provide access to capital, help build new relationships with our tenant network and support the overall growth of the platform.”
Brookfield, whose chairman is former Bank of England governor Mark Carney, first revealed it was considering a bid for Tritax in May.
The Toronto-based company holds a 50% stake in Canary Wharf Group with the Qatari Investment Authority and owns Center Parcs in the UK and Ireland, payments company Network International and property repair provider Homeserve.
Tritax EuroBox shares were 0.6 percent lower on Thursday morning at 152.1p.
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